September 18, 2019
PAO Severstal, one of the world’s leading vertically integrated steel and
mining companies, has launched a pilot project under the World Steel
Association’s (“Worldsteel”) “Step up” programme, which aims to reduce
greenhouse gas (GHG) emissions by the global steel industry through the
introduction of a new methodology. Launched at Severstal’s flagship steel mill
in Cherepovets, a study has begun using the Worldsteel benchmarking system to
identify opportunities to reduce CO2 emissions from steel production in the
near term.
Based on the results of the pilot project, Severstal will be able to
announce new GHG reduction targets for 2025 at its annual Capital Markets Day
in November 2019. The Step up programme has been launched by Worldsteel to help
the steel industry contribute to the global transition towards a carbon-neutral
economy. It is focused on four main areas: optimal selection and use of raw
materials, energy efficiency, increased productivity and process
reliability.
Severstal is one of the very first companies to pilot the Step up
methodology, which Worldsteel hopes to roll out with steel producers globally.
Worldsteel’s members represent more than 80% of global steel production. On
10-12 September, Worldsteel specialists held a series of meetings with
Severstal experts and management at the Cherepovets Steel Mill production site
in order to determine areas of work to improve process efficiency and reduce
greenhouse gas emissions. The parties agreed upon on a methodology for
estimating СО2 emissions, identified key drivers for reducing emissions and
developed the programme of initiatives under the Step up umbrella to set new
industry best practices.
Alexander Shevelev, CEO of Severstal, commented:
“Severstal has been collaborating with Worldsteel on its GHG benchmarking
for several years. According to Worldsteel, the Cherepovets Steel Mill
currently ranks 16th out of 64 companies with comparable production technology,
producing 2.1 tons of СО2/ t of liquid steel (coverage areas 1-3). Severstal
plans to reduce its GHG emission s significantly. At Cherepovets Steel Mill,
the Company has already carried out an inventory of the main sources of СО2,
has developed an emissions map and has measured carbon content in raw materials
and slags to refine greenhouse gas emission factors. Looking outside of our
traditional business, the global shift towards a low-carbon economy also brings
new commercial opportunities, and Severstal has invested in the development of
Russia’s first wind farms that will begin to meet growing demand for renewable
energy. Severstal’s climate change initiatives are overseen by the Board of
Directors. We believe that innovative and agile companies such as Severstal can
help lead carbon-intensive industries towards impactful change.” Severstal’s
goal is to be “the leader of the steel industry of the future”.
This includes helping lead the industry towards more responsible operating
models through our partnership with the World Steel Association. Starting with
its own business, the successful evolution of processes to reduce GHG emissions
will be supported by Severstal’s use of advanced technology, including machine
learning and big data analytics. Severstal is a member of Worldsteel, which has
united 161 industry companies from 60 countries since 2001. The Company
actively supports the association’s initiatives, takes part in the work of
major committees and in the implementation of joint projects.
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